Ex-Finance Director In Plymouth Pleads Guilty

David Bertnagel pleaded guilty Friday to federal charges of embezzling more than $800 from the town of Plymout

PLYMOUTH — Accused by investigators of embezzling more than $800,000 from the town, former Finance Director David Bertnagel pleaded guilty Friday in federal court to charges of theft and filing a false tax return.

Bertnagel could face up to 13 years in prison. Under federal court guidelines, he is likely to receive significantly less when he is sentenced in May.

Bertnagel, 41, was arrested only a month ago, but entered a guilty plea Friday in U.S. District Court in Bridgeport.

Court documents list his attorney as Robert Muchinsky of Hartford; he could not be reached at his Hartford office early Friday afternoon. Plymouth Mayor David Merchant also could not be reached.

Prosecutors accused Bertnagel of writing more than 200 checks to himself on the town's payroll accounts between October of 2011 and October of 2014. All told, the loss was $808,030, prosecutors said.

When confronted by Merchant, he claimed that the previous administration had authorized him to take advances on his pension, according to prosecutors. Bertnagel had worked for the town for only three years at that point.

Federal investigators were involved because Plymouth had received approximately $450,000 in grants from the U.S. Department of Health and Human Services, according to prosecutors. They have not said whether that money was part of the embezzled funds. The Internal Revenue Service also investigated, and determined that Bertnagel didn't report the $808,030 on his income taxes — and in one year, filed no tax return at all.

The IRS said he owes the government $145,564 in taxes.

"Bertnagel used the embezzled funds to make mortgage payments, pay credit card bills, fund home improvement projects and purchase more than $100,000 in coins, stamps and other collectibles," according to a statement from U.S. Attorney Deirdre M. Daly's office. "He also converted more than $182,000 of the stolen funds by way of cashed checks, ATM withdrawals and money orders."

As part of a plea agreement, Bertnagel agreed to forfeit more than $45,000 in bank accounts and various collectibles that were seized when he was arrested on Jan. 20. He has had to promise to pay the IRS all back taxes, penalties and interest, and to pay back $808,030 to Plymouth.

Bertnagel is to be sentenced May 15. When he was released on $250,000 bond after his arrest, the court ordered that Bertnagel "not gamble at all – no casinos, lottery, online bets, etc."

Bertnagel is to be sentenced May 15. Assistant U.S. Attorney Christopher M. Mattei is prosecuting the case.

Bertnagel had previously worked in the comptroller's office in Bristol; the city has reviewed its books and found no money missing. Bertnagel also has served on the finance board in Thomaston, where he lives with his mother. The town's website still lists him as secretary of the board.